Perplexity Raises $200 Million as Valuation Hits $20 Billion

Key Highlights Perplexity closes $200M round, valuation jumps to $20B. Annual recurring revenue nears $200M, showing strong ￰0￱ positions itself as a direct Google ￰1￱ Closes $200 Million Funding Round at $20 Billion Valuation Perplexity, an AI-powered search engine startup, has closed a $200 million funding round at a $20 billion valuation, according to The Information , citing company ￰2￱ the company has not publicly confirmed the news, the latest investment reflects strong confidence in its growth ￰3￱ to the report, Perplexity’s total funding has now reached $1 ￰4￱ this year, in mid-July 2025, the company closed a $100 million round at an $18 billion ￰5￱ annual recurring revenue (ARR) is approaching $200 million, up from $150 million reported last ￰6￱ Insider previously noted the company was preparing a new round, highlighting the startup’s steady financial growth and expanding market footprint.

Next-Generation AI Search Technology Founded in 2022, Perplexity is developing a next-generation AI search engine with a conversational ￰7￱ large language models, the platform delivers accurate, source-backed results, helping users find reliable information ￰8￱ company positions itself as a direct competitor to Google, and media reports suggest it even explored acquiring the Chrome browser for $34.5 billion. Perplexity’s aggressive growth strategy and technological innovation make it a standout player in the AI search ￰9￱ startup is reportedly working on integrating its technology with educational platforms and enterprise knowledge tools, aiming to become the go-to search solution for both professional and personal ￰10￱ note that its combination of conversational AI and source-backed accuracy could redefine how users interact with search engines, potentially challenging incumbents like Google and Microsoft in multiple market segments.